WASHINGTON – Mitchell Wade, founder of the defense contracting firm MZM Inc., pressured employees to donate to a political fund that benefited Rep. Randy "Duke" Cunningham and other members of Congress, according to three former employees of the company.

Wade, who took a $700,000 loss on the purchase of Cunningham's Del Mar home and allows the congressman to stay on his yacht while in Washington, demanded employees make donations to the company's political action committee, MZM PAC, they said.

"By the spring of '02, Mitch was twisting employees' arms to donate to his MZM PAC," said one former employee. "We were called in and told basically either donate to the MZM PAC or we would be fired."

Many companies have PACs, but campaign finance laws prohibit employers from pressuring workers to contribute to the PAC. They may encourage contributions, but not compel them.